Southern Palladium (ASX:SPD) confirmed that its mining right application for the Bengwenyama platinum group metals project was formally granted by the South African Department of Mineral and Petroleum Resources, according to a Monday Australian bourse filing.

The right is granted for an initial period of 30 years, after which it is entitled to apply for a renewal.

Its board approved the commencement of early box-cut and decline development before the end of the year, subject to completion of the relevant waste management and water use permitting processes.

Its shares climbed 20% in recent trading on Monday.